The challenges of growing our scaleup sometimes feel like a complete grind. As we explored in the previous two articles in this series, we can begin to experience some of the warning signs of burnout. Perhaps you recognised that you were struggling to shirk off that feeling of being tired and drained most days. Or it could be that you recognised you feel a bit trapped in your scaleup business and can't see a way through? Or you are feeling isolated. Maybe you are feeling overwhelmed or are struggling to make decisions.
If you missed either of those articles, you can better understand founder burnout here and then learn how to spot the early signs of burnout here.
As discussed in our last article, any of these feelings could be an early warning sign that you are spending too much time on the negative side of stress. If we're not careful, getting stuck in that cycle can lead us towards burnout. So, it is vital to take action now to change direction and find a new way forward.
In the last article, we introduced some of the findings from the Balderton Capital research from 2023. There were several insights which validate why this is such a critical area for us to be aware of:
Alongside these results, their research also examined the impact of stress on performance, with 88% agreeing, either strongly or somewhat, that excessive stress reduces the ability to problem-solve and think creatively; 89% agreeing that excessive stress can result in poor decision-making; and 71% agreeing that this can lead to a high-pressure culture that makes it difficult to attract and retain the best talent.
The Balderton research is not the only source. This area has become increasingly fascinating in academic research and the broader entrepreneurial ecosystem. One of the leading academics in research into entrepreneurs' cognitive, affective and behavioural strengths and vulnerabilities is Dr Michael Freeman from the University of California. In 2015, he published his study findings of 242 entrepreneurs compared to 93 "demographically matched comparison participants." He found that entrepreneurs reported significantly higher symptoms of lifetime mental health conditions. Comparisons between employed workers and entrepreneurs show that founders face significantly more challenging circumstances due to the complexity of the challenges faced, greater levels of responsibility and the uncertainty of success, or even what the next day might bring. And the reality of having less of a support network further drains founder resources and mental wellbeing.
These insights are entirely relatable. Whether you are part of a known startup ecosystem, such as an incubator, or just decided to carve out your own path, there is pressure to succeed and prove that you have what it takes. Many of us have dependents, friends and family who, while supportive, have also questioned whether this will work and whether it is worth the risk.
As we begin to scale, this pressure increases, as you also have the burden of responsibility for a growing team, headcount costs, and overheads. Beyond these apparent pressures, there is the difficulty of letting go. During the early startup stages, you were involved in every single decision. Each sale. Each client project. As the volume of work grows and the team grows, it becomes increasingly more difficult to be across everything. Of course, you try. And this means you work harder to feel more in control.
We also see founders talking about the business becoming more complex. As you begin to structure into teams, workflows become more involved. Projects need handovers. Tensions arise between teams. The reality of managing a growing team becomes more pressurised.
However, while these changes in the business can further fuel the stress and pressure and contribute to the likelihood of founder burnout, they also have a downward spiralling effect on the team spirit and culture and overall business performance. Under stress, maintaining the constructive and valuable behaviours that enable us to collaborate and work effectively with others can be much more difficult. Tempers shorten. We become far more likely to focus on the negatives. To criticise. To dress down. To undermine. Our people begin to feel stressed, too. They react to these behaviours. They feel unhappy. In-fighting increases. Relationships become strained. The culture has become toxic.
Given the high pressure that founders experience through startup and scaleup phases, it is not surprising that we hear high-profile examples of toxic cultures. WeWork, Uber, and Theranos are just a few of the well-known, hyped scaleup organisations I have written about in this blog article. But there are numerous other examples that we can examine. Whilst extreme, the behaviours and resulting fallout show the immense pressure that founders can feel that can lead to unfavourable outcomes.
Clearly, we need to find a different way to manage our stress levels and recharge our batteries so that we have the resources to deal with issues as they arise. Below are seven practical steps you can take to carve a different path through stress levels.
As you read through the actions above, hopefully, these all seem really doable—highly practical steps you can take to begin to make a difference. Do you feel you need to work on this to help you fall back in love with your scaleup business?
Often, we can recognise that we need to do something and even have some options clearly laid out for us, but we need more time to be ready to commit and make changes. This is often the case when our clients join our Founder Coaching Programmes and Founder Focus sessions. It's not the right time to focus on this just now. I've got too many other things going on. If I complete the next '[insert significant milestone]', I will look at this.
There will always be some reason why we can't. But once we have acknowledged that we need to do something, it is then up to us to take action. If any of the areas we have covered through these three articles resonate with you, please do get in touch.
Written by Barry McNeill | Founder and Managing Director of Work Extraordinary
Barry has over 25 years supporting leaders and teams to be more effective in driving business outcomes, such as growth, customer service and impact. He and his team have helped numerous founders, founding teams and growing organisations to develop new ways of working to achieve scaleup growth, enhanced culture, improved operational effectiveness and customer impact. You can connect with Barry through the social channels on this website.
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